Feeds

WPP chief sees headroom for Internet ad growth

'Disconnect' exists between spend and consumer activity

Top three mobile application threats

DLD08 The amount of money companies spend on the Internet remains out of sync with the extent to which consumers are using it, claims WPP CEO Sir Martin Sorrell. Speaking at the opening of the DLD08 conference in Munich yesterday, Sorrell said that his company's clients spend about 10 per cent of their budgets on digital media, whereas consumers now spend 20 per cent of their time online - there is "a disconnect that has to correct," Sorrell said.

This disconnect has some effect on how the ad industry should view Google. Sorrell describes the Internet giant as a "frenemy", or possibly a "froe", and notes that although its market cap is five times that of the top four agencies combined, its revenues are only two thirds of theirs. So if the agencies move a higher proportion of their clients' money onto the web, and we take into account the fact that advertising is only a part of Google's revenues, the company's position is possibly not as dominant or secure as often thought. Which might explain Sorrell's ambivalent attitude.

Sorrell has good cheer for the global economy, but bad news for Europe. There will be no recession in 2008, but the possibility of a "real issue" in 2009, in both cases thanks to China, where a post-Olympics correction could trigger destabilisation elsewhere. Europe, however, is two speed, "half-speed in the west, and full speed in the east." So WPP is betting big on Asia.

Most of the rest of the opening panel happily agreed that Europe was doomed (which was not quite what Sorrell said), and a bizarre consensus that the UK would be the sole economic survivor was almost detectable. We think we're safe excluding Sorrell from this lunacy too, and the rest of them clearly haven't visited recently. ®

Application security programs and practises

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Microsoft: We're making ONE TRUE WINDOWS to rule us all
Enterprise, Windows still power firm's shaky money-maker
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.